Daily Brief – Vigilance, Commitment and Perseverance

Vigilance, Commitment and Perseverance

Those are the requirements from ECB President Christine Lagarde for Europe to win the fight against inflation. What is conspicuously missing is an indication of the likely timing for the next cut in EUR interest rates, but it will not be at the time of the next ECB meeting in July. So expect EUR to remain strong and EUR bonds to reflect that. 5 year German bonds yield 2.68% and 10 year 2.62%. Enough said.

EUR/USD 1.0800.

Japan’s Population Crisis

If a country’s population has twice as many deaths as births and is reducing by 2000 each and every day, it means that it has a problem. Marriage is also out of fashion in Japan and the Metropolitan Area of Tokyo is taking action by setting up an app to encourage people to sign up and have the chance to meet a potential partner. A salary slip and a detailed questionnaire must be provided to establish suitability. One thing the app is not is a dating site like Tinder, and the objective is to increase procreation rather than casual hook ups.

EUR/JPY 169.24.

Taylor Swift by numbers

Hotel prices are the first and most significant movers as the Taylor Swift Eras Tour hits Europe with hotel accommodation in Warsaw, Liverpool and Stockholm for example all increasing by more than 100% for the nights that the artiste’s fans or Swifties descend on the concert venues. Swifties are not shy about spending and statistically spend 12 times the average night out spend to mark attending a concert. The positive revenue impact on the UK economy alone is predicted to be GBP 1 billion and that is after Taylor Swift takes home her share of the ticket prices.

GBP/USD 1.2720.

Monster Raving Loony Party

Those readers who endured Friday night’s political debate between 7 of the parties as the General Election moves into a higher gear, will doubtless be wondering and probably hoping if the usual crop of satirical candidates will be a feature in the July 4 voting. While the Monster Raving Loony party will be represented, so too will Count Binface in Pm Sunak’s constituency and also Elmo in Sir Keir Starmer’s constituency where he will also have to contend with Nick The Incredible Flying Brick. No news yet about Buckethead who first stood against Margaret Thatcher in the 1980’s but just £500 is all that it costs to stand on the stage next to the likely next Prime Minister of the United Kingdom. That and a thick skin.

GBP/EUR 1.1775.

Never Gonna Give You Up

This day in 2016 Rick Astley released his first album for 15 years named 50. Straight to Number 1 in the UK but nowhere in the USA. Timeless.

We’re no strangers to love
You know the rules and so do I (do I)
A full commitment’s what I’m thinking of
You wouldn’t get this from any other guy

I just wanna tell you how I’m feeling
Gotta make you understand

Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you

We’ve known each other for so long
Your heart’s been aching, but you’re too shy to say it (say it)
Inside, we both know what’s been going on (going on)
We know the game and we’re gonna play it

And if you ask me how I’m feeling
Don’t tell me you’re too blind to see

Never gonna give you up
Never gonna let you down

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter